Financial Comparison: Teva Pharmaceutical Industries (NYSE:TEVA) versus Aytu BioPharma (NASDAQ:AYTU)

Teva Pharmaceutical Industries (NYSE:TEVA) and Aytu BioPharma (NASDAQ:AYTU) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 33.5% of Aytu BioPharma shares are owned by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are owned by insiders. Comparatively, 4.9% of Aytu BioPharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Teva Pharmaceutical Industries and Aytu BioPharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teva Pharmaceutical Industries	$17.26 billion	2.80	$1.41 billion	$0.60	69.07
Aytu BioPharma	$57.57 million	0.39	-$14.25 million	($1.66)	-1.23

Teva Pharmaceutical Industries has higher revenue and earnings than Aytu BioPharma. Aytu BioPharma is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Teva Pharmaceutical Industries and Aytu BioPharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teva Pharmaceutical Industries	0	1	12	0	2.92
Aytu BioPharma	2	0	2	0	2.00

Teva Pharmaceutical Industries currently has a consensus target price of $45.92, indicating a potential upside of 10.80%. Aytu BioPharma has a consensus target price of $14.50, indicating a potential upside of 610.78%. Given Aytu BioPharma’s higher probable upside, analysts plainly believe Aytu BioPharma is more favorable than Teva Pharmaceutical Industries.

Volatility and Risk

Teva Pharmaceutical Industries has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Aytu BioPharma has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Profitability

This table compares Teva Pharmaceutical Industries and Aytu BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teva Pharmaceutical Industries	4.08%	32.64%	6.34%
Aytu BioPharma	-24.76%	-56.54%	-13.14%

Summary

Teva Pharmaceutical Industries beats Aytu BioPharma on 11 of the 13 factors compared between the two stocks.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

About Aytu BioPharma

Aytu Biopharma, Inc. is a specialty pharmaceutical company, which engages in identifying, acquiring, and commercializing novel products. It operates through the Rx and Consumer Health segments. The RX segment consists of various prescription pharmaceutical products sold through third parties. The Consumer Health segment includes various consumer health products sold directly to consumers. Its products include Adzenys ER, Adzenys XR-ODT, Cotempla XR-ODT, Karbinal ER, Poly-Vi-Flor, Tri-Vi-Flor, Generic Tussionex, Tuzistra XR, and ZolpiMist. The company was founded on August 9, 2002 and is headquartered in Englewood, CO.